It turns out Prime Minister Justin Trudeau’s so-called “GST Holiday” will only save Canadian families an average of $4.51, the Senate National Finance Committee heard. Senators simultaneously endorsed the measure while commenting it appeared pointless, according to Blacklock’s Reporter. “I think we all understand it is a political measure,” testified Professor Sylvain Charlebois of Dalhousie University’s Agri-Food Analytics Laboratory at committee Thursday. Savings would be modest, he said.“When it comes to retail, the average consumer will save approximately $4.51 over that two-month period per Canadian,” said Charlebois. “That is based on sales volumes.”“We’re talking about $4.51.” “That’s it. That is not a big amount.”Most groceries and ingredients used for homemade meals are already tax free. Bill C-78 An Act Respecting Temporary Cost Of Living Relief proposes a 60-day GST break on taxed foods like prepared meals, restaurant and take-out fare, candy, soda pop and snacks.Charlebois’ testimony came the same day analysts at the Universities of British Columbia, Dalhousie, Guelph and Saskatchewan released Canada’s Food Price Report for 2025. Charlebois is the lead researcher.“In 2025 it is anticipated Canadians will continue to feel the impact of food inflation though at a moderate level between 3% 5%,” said the report. Food inflation overall is currently running at 2.8%.The cost of feeding a typical family of four will rise by more than $800 next year, said the Food Price Report. “Looking ahead to 2025 we are expecting a family of four with the same demographic makeup to spend $16,834,” it said.The cost of feeding a teenage minor will average $4,400 next year, analysts predicted. Food for a single working adult under 30 will average $4,200. Meals for a pensioner over 70 will average $3,800.The committee on Thursday approved Bill C-78 amid complaints it will do little. “This measure is too modest and poorly targeted and fails to make a real difference for those who really need it,” said Liberal-appointed Sen. Krista Ross, former CEO of the Fredericton Chamber of Commerce.“It won’t target those most in need,” she said.Cabinet has estimated the GST break from December 14 to February 15 will cost $1.6 billion. Parliamentary Budget Officer Yves Giroux on Thursday said it would mainly benefit “people who were planning to buy alcohol or go to a restaurant anyway.”“If you buy expensive wine you potentially benefit from a much bigger GST break than if you buy a bag of chips,” Giroux told the committee. There was “no new real economic activity” expected to result from the tax holiday, he said.
